China’s Tsinghua Unigroup prepares US$23 billion bid for US chip maker Micron
Tsinghua Unigroup is preparing a US$23 billion bid for US memory chip maker Micron Technology in what would be the biggest Chinese takeover of a US company, sources said.
The state-backed technology conglomerate is prepared to bid US$21 a share for Micron, a 19.3 per cent premium to the stock’s close on Monday. The offer could come as early as Wednesday, a person close to Tsinghua said, although a Micron spokesman said it had not received an offer.
A successful bid to acquire Micron would consolidate Unigroup’s position as a champion for China’s technological development, after it struck deals and research partnerships with international firms in the semiconductor industry.
Unigroup is controlled by Tsinghua University in Beijing, which counts President Xi Jinping among its alumni
The company is controlled by Tsinghua University in Beijing, which counts President Xi Jinping among its alumni, and is backed by the central government.
China has attached strategic importance to the development of domestic semiconductor, server and networking equipment industries amid fears of foreign cyber spying.
But any foreign takeover of Idaho-based Micron - the last major US-based manufacturer of DRAM chips used in personal computers - would likely have to pass a review by the Committee on Foreign Investment in the United States, which reviews deals for national security implications.
Micron makes both dynamic random access memory chips, or DRAM, and NAND memory chips for storing music, pictures and other data on smartphones, cameras and other mobile devices.